Israel’s Export Slowdown Eases in 2018

RAPAPORT... Israel’s polished-diamond exports showed signs of
stabilizing in 2018 after three years of heavier declines, according to
government data.

Shipments slipped 2.5% to $4.48 billion for the year, the
nation’s Ministry of Economy and Industry reported Sunday. That compares with
drops of 20%, 6% and 4% in 2015, 2016 and 2017, respectively, Rapaport records
show.

“Following a few years of…crisis for the diamond trade, we sense shoots of optimism…for the future of the
sector,” said Yoram Dvash, president of the Israel Diamond Exchange.

Changes to the way the
statistics were compiled had a negative impact on the year’s growth figure,
which would have shown a marginal increase had the system remained the same,
Dvash argued. The ministry didn’t explain what the adjustments to the calculations had been.

“Either way, I’m very
happy about the fact that the sharp decline in exports has stopped, and
about the indications that the sector is entering a better era,” Dvash added. “I’m
hopeful that the situation will improve in 2019.”

Polished imports grew
4.1% to $3.04 billion, boosted by new rules enabling dealers in Israel to
inspect diamonds for up to 30 days tax-free, the ministry added. Rough exports
increased 1.1% to $2.25 billion. The ministry didn’t provide a growth rate for
rough imports, but said the total amount was $2.66 billion — which works out 7%
lower than the figure it reported for 2017.

Israel reports its diamond-trade
figures on a net basis, which means they exclude goods that dealers ship across
a border and subsequently bring back unsold.

Image: A diamantaire examines a stone during the 2016 International Diamond Week at the Israel Diamond Exchange. (Shutterstock)